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The Members of Avon Lifesciences Limited,
Your Directors are pleased to present their Report on your Companys operations along with the Audited financial statements for the financial year ended on 31st March, 2019.
summary of standalone financial results
|(Rs. in Lakhs)|
|Year Ended 31.03.2019||Year Ended 31.03.2018|
|PROFIT/ (LOSS) BEFORE TAX||(2,445.95)||(2,392.42)|
|PROFIT/ (LOSS) AFTER TAX||(2,445.95)||(2,392.42)|
|EARNINGS/(LOSS) PER SHARE (EPS)(IN RS.)||(10.27)||(10.04)|
In view of loss incurred during the year under review, your Directors do not recommend any divided on Equity Shares.
There was no operational activity during the year under review. The operational activities at the plant of the Company could not be resumed for operations owing to certain regulatory clearances still required. The Management is following up with authorities, inorder to enable restart of operations
The company is presently developing APIs( Active Pharmaceutical Ingredients) in various therapeutic segments to be soon commercialized at its Solapur site. The company would approach the State FDA Authorities for relevant licenses and permissions for manufacturing the new APIs. The company continues to hold a valid Establishment Inspection Report issued by the USFDA in 2016
The Company continues to operate only in one segment i.e. pharmaceuticals and there is no change in the nature of business of the Company.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report for the year under review is provided in a separate section of this Annual Report and form a part of the Boards Report.
subsidiary, joint venture and associate companies
Details regarding subsidiary/ associate Company or joint venture as given in Form MGT - 9
directors & KMP
Board of Directors as of 31.03.2019
|Mr. Ajit Kamath||:Non-Executive Chairman|
|Mr. Rajendra Kaimal||: Non-Executive Director|
|Dr. Sunil Pitroda||: Non-Executive Independent Director|
|Mr. Abhishek Buddhadev||: Non-Executive Independent Director|
|Ms. Urja Shah||: Non-Executive Independent Director & Women Director|
In accordance with the provisions of section 152(6) of the Companies Act, 2013 ("the Act") and Articles of Association of the Company, Mr. Rajendra Kaimal (DIN: 00032839), is liable to retire by rotation at the ensuing Annual General Meeting (AGM) and offers himself for re-appointment. The Board recommends his re-appointment.
Mr. Palak Shah (DIN: 03392059), resigned as Independent Director of the Company w.e.f 27th December, 2018.
Ms. Urja Shah, was appointed as additional Independent and Women Director of the Company w.e.f 27th December, 2018.
Mr. Jignesh Patel, was appointed as Company Secretary & Compliance Officer of the Company w.e.f. 27th December, 2018.
Brief profiles of the Directors seeking appointment or reappointment are included in a separate "Annexure B".
a. Board meetings
The Board met 5 times during the financial year, the details of which are given in the Corporate Governance Report that forms part of this Annual Report. The intervening gap between any two meetings was within the period prescribed by the Companies Act, 2013.
b. Evaluation of Board, Committees and Directors
The Board has carried out the annual evaluation of its own performance, and of each of the directors individually. The manner in which the evaluation has been carried out has been explained in detail in the Corporate Governance Report, which forms part of this Annual Report.
c. Policy on appointment and remuneration of Directors
The Company has formulated criteria for determining Qualifications, Abilities, Experience and Independence of a Director as also a Policy for remuneration of Directors, Key managerial Personnel and senior management.
The Companys policy on programmes and measures to familiarize Independent Directors about the Company, its business, updates and development includes various measures viz. issue of appointment letters containing terms, duties etc.,
a. statutory Auditors
Pursuant to the provisions of Section 139 of the Act and the rules framed thereunder, M/s. N G Jain & Co, Chartered Accountants (Registration No. 103941W), were appointed as statutory auditors of the Company from the conclusion of the twenty-forth annual general meeting (AGM) of the Company held on 31st March, 2018, till the conclusion of the twenty-ninth AGM to be held in the year 2022, subject to ratification of their appointment at every AGM.
c. secretarial Auditors
Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr. Mehul Pitroda of M. S. Pitroda & Co., Company Secretary in Practice to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed herewith as "Annexure C" comments of the Secretarial Auditor in their report are self explanatory.
INTERNAL CONTROL SYSTEM AND COMPLIANCE FRAMEWORK
The Company has a proper and adequate Internal Financial Control System, to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and the transactions are authorized, recorded and reported correctly.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
The Company has formulated a whistle blower policy with a view to provide a vigil mechanism for the directors and employees of the company to report instances of unethical behavior, fraud or mismanagement.
RISK MANAGEMENT POLICY
In accordance with Section 134(3) (n) of the Act, the Company has framed a Risk Management Policy to identify and assess the key risk areas. Your Board has identified any element of risk which may threaten the existence of the Company.
RELATED PARTY TRANSACTIONS
All related party transactions that were entered into during the financial year were on an arms length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company, which may have a potential conflict with the interest of the Company at large, and thus disclosure in Form AOC-2 is not required.
None of the Non-Executive Directors has any pecuniary relationship or transactions with the Company other than sitting fees payable (if any) to them.
INFORMATION ON EMPLOYEES
Information on particulars of employees remuneration as per Section 197 of the Companies Act, 2013, read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is reported to be nil as there are no employees who are in receipt of remuneration above the prescribed limit.
The ratio of remuneration of each director to the median employees remuneration and other details in terms of Sub - Section 12 of Section 197 of the Companies Act, 2013 read with Rule 5 (1) of the Companies Appointment and Remuneration of Managerial Personnel) Rules, 2014, are not applicable as the Directors did not draw and remuneration from the Company for the Financial Year 2018-19.
LOANS, GUARANTEES OR INVESTMENTS
Details of loans, guarantees and investments covered under applicable provisions of section 186 of the Act are given in the notes to the financial statements.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Pursuant to the provisions of section 135 of the Act, read with CSR Rules, the Company has formed a CSR committee. However due to no operational activity and losses incurred by the Company during the year under review and the previous financial year, the Company did not undertake any CSR activity.
The Company has not accepted any deposits from the public and there are no outstanding deposits from the public as on 31st March, 2019.
EXTRACT OF THE ANNUAL RETURN
The extract of the annual return in form MGT - 9 is annexed herewith as "Annexure D"
DIRECTORS RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013:
a) that in the preparation of the annual financial statements for the year ended 31st March, 2019, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;
b) that such accounting policies as mentioned in the Financial Statements have been selected and applied consistently and judgment and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2019 and of the loss of the Company for the year ended on that date;
c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) that the annual financial statements have been prepared on a going concern basis;
e) that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively;
f) that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The information relating to Conservation of energy, technology absorption, foreign exchange earnings and outgo, pursuant to Section 134 of the Act, read with the Companies (Accounts) Rules, 2014 is given as "Annexure A" and forms part of this report.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT AND DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANYS OPERATIONS IN FUTURE:
There are few legal matters//litigations ongoing which have been filed against the company and its Directors during last few years. The Company, through their Counsels/lawyers is getting represented for defending its position.
OTHER INFORMATION / DISCLOSURES
The Company has in place a policy against sexual harassment at work place in line with the requirements of the concern statute. There was no complaint received during the year, nor there are any pending complaints which need to be redressed.
Further, in terms of the provisions of the Circular No. CIR/CFD/CMD1/27/2019 dated February 8, 2019 issued by SEBI, the Company has obtained the Annual Secretarial Compliance Report, thereby confirming compliance of the applicable SEBI Regulations and circulars /guidelines issued thereunder, on behalf of the Company.
A Certificate has been obtained from M/s Yogesh Patel & Associates, Practicing Company Secretaries, that none of the Directors on the Board of the Company has been debarred or disqualified from being appointed or continuing as Directors of Companies by the Securities Exchange Board of India / Ministry of Corporate Affairs or any such Statutory Authority.
The Compliance certificate from the auditors regarding compliance of conditions of corporate governance as stipulated in SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, is annexed with the report.
GRATITUDE & ACKNOWLEDGMENTS
Your directors wish to place on record their sincere thanks and appreciation to all our customers, suppliers, banks, authorities, members and associates for their co-operation and support at all times, and to all our employees for their unstinted contribution to the Companys business, and look forward to continued support.
|For and on behalf of the Board of Directors|
|AVON LIFEsCIENCEs LIMITED|